RAJ OIL MILLS 2021-22 Annual Report Analysis

Sat, 20 Aug

RAJ OIL MILLS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

RAJ OIL MILLS Income Statement Analysis

• Operating income during the year rose 14.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.5% in FY22 as against 5.6% in FY21.
• Depreciation charges increased by 6.7% and finance costs increased by 18.4% YoY, respectively.
• Other income grew by 31.1% YoY.
• Net profit for the year declined by 36.2% YoY.
• Net profit margins during the year declined from 3.9% in FY21 to 2.2% in FY22.

RAJ OIL MILLS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,035	1,186	14.5%
Other income	Rs m	0	1	31.1%
Total Revenues	Rs m	1,035	1,186	14.6%
Gross profit	Rs m	58	41	-28.8%
Depreciation	Rs m	12	12	6.7%
Interest	Rs m	0	0	18.4%
Profit before tax	Rs m	47	29	-37.4%
Tax	Rs m	6	3	-45.7%
Profit after tax	Rs m	41	26	-36.2%
Gross profit margin	%	5.6	3.5
Effective tax rate	%	12.8	11.1
Net profit margin	%	3.9	2.2

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RAJ OIL MILLS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 446 million as compared to Rs 432 million in FY21, thereby witnessing an increase of 3.4%.
• Current assets rose 36% and stood at Rs 153 million, while fixed assets fell 3% and stood at Rs 197 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 350 million as against Rs 316 million during FY21, thereby witnessing a growth of 11%.

RAJ OIL MILLS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-120	-94	NA
Current Liabilities	Rs m	432	446	3.4
Long-term Debt	Rs m	10	0	-100.0
Total Liabilities	Rs m	316	350	10.8
Current assets	Rs m	113	153	35.8
Fixed Assets	Rs m	203	197	-3.1
Total Assets	Rs m	316	350	10.8

RAJ OIL MILLS Cash Flow Statement Analysis

• RAJ OIL MILLS's cash flow from operating activities (CFO) during FY22 stood at Rs -12 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 17 million, an improvement of 140% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -7 million net cash flows seen during FY21.

RAJ OIL MILLS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	51	-12	-
Cash Flow from Investing Activities	Rs m	-14	-6	-
Cash Flow from Financing Activities	Rs m	-44	17	-
Net Cash Flow	Rs m	-7	0	-

Current Valuations for RAJ OIL MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.7, an decline from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 61.9, stands at 31.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -9.9 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 40.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	69.0	79.1
TTM Earnings per share	Rs	2.7	1.7
Diluted earnings per share	Rs	2.7	1.7
Price to Cash Flow	x	25.8	40.3
TTM P/E ratio	x	33.1	31.5
Price / Book Value ratio	x	-12.8	-16.5
Market Cap	Rs m	1,534	1,546
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAJ OIL MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.3x during FY22, from 0.3x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 66.0x during FY22, from 123.9x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at -27.8% during FY22, from -34.0% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at -31.7% during FY22, from -42.9% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 7.6% during FY22, from 13.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.3	0.3
Debtors’ Days	Days	18,342,578	19,783,609
Interest coverage	x	123.9	66.0
Debt to equity ratio	x	-0.1	0.0
Return on assets	%	13.0	7.6
Return on equity	%	-34.0	-27.8
Return on capital employed	%	-42.9	-31.7

To see how RAJ OIL MILLS has performed over the last 5 years, please visit here.

RAJ OIL MILLS Share Price Performance

Over the last one year, RAJ OIL MILLS share price has moved up from Rs 59.9 to Rs 61.9, registering a gain of Rs 2.0 or around 3.3%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for RAJ OIL MILLS and quarterly results for RAJ OIL MILLS)